Wednesday, September 25, 2019

Case study: Tariff increase from 10% to 25%

With the White House threatening to raise the tariffs to 25% from 10% on Jan. 1 if a trade deal isn’t reached, vendors and full-price department stores “have loaded up on goods” from China to protect themselves from the possible increase, Morris said.
But after the holidays, it’s likely those stores will have excess inventory they need to sell quickly ahead of the spring, and TJX “is going to be in a position to go in and buy those products,” he said.
Regardless, TJX expects to keep growing in popularity. “We see an excellent opportunity to grow our store base to a total of 6,100 stores,” Herrman told analysts last month, which would be a 50% increase.

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